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  • 2 weeks later...

There are gains to be made from SPNEC AND MONDE 

SPNEC

 

Do you still recall  the 50.7M buy padding at 1.72 (see picture 1) that moved dynamically from 1.70 to 1.72 price, range prior to the original SRO EX-date of SPNEC on July 12, 2022? Where is it no

Here is a little joke about that

SPNECite: Sir L, where is the 50.7M shares buying demand now that I used to see on July 8 and July 11, two trading days before the Ex- date

Sir L: Well, on those dates we were campaigning to get your votes for the SRO. Now that you have voted, its over

From this joke, gains can be made from SPNE

We knew that from a low of 1.50 previously, SPNEC’s price went as high as 1.78 prior to its first SRO EX- date of July 12, 2022.  That is 28 centavos or 19% rise

Since the new SRO EX-date had been moved to August 12, 2022, the same price action if not better will be dealt to SPNEC because at the current price of 1.55 to 1.60, that is too close to the 1.50 possible final SRO price of SPNEC. The SRO would be a hard sell

To maximize gain, you should be patient enough to buy at 1.50 to 1.55 and wait  to sell  two to  three trading days before its SRO EX date on August 22, 2022. I am sure SPNEC’s price will be pumped up just as it did the last time

 

MONDE

 

If you were not pestered by the pesticide issue of MONDE you may have bought along with this group when it was 12.90 to 13.0 as advised. At 14.10, closing price, you could have 1.20 pesos or 9% paper gain already just like the many silent folks here. Did you notice that MONDE is being slurped by Foreign Brokerages in the last 3 days like a pancit canto

And did you know that this may continue to 15.0  level and above

Well, here is the talk in the rumor mill

Ate Betty ANG, owner, and her party, lost their US dollar Billionaire status as reported by FORBES when MONDE’s price tumbled due to the pesticide issue. At 13.04  a share, Ate Betty is way below that coveted billionaire status. That hurts her considering that it is not her own doing to lose such status. At 15 to 16 pesos a share or above, Ate Betty and party secure back their old status and way up more than just billionaires

There is saying that, “hell has no fury over a woman’s scorn”. As a revenge probably, could it be that, Ate Betty and her party are the ones behind these Foreign brokerages’ support and aggressive buying? If so, then Ate Betty and her party had just bought millions of their company shares silently at 13.20 average price and there is no telling when they stop buying to finally put an end to the pesticide issue. If foreign brokerages will keep on buying MONDE, its price may well go up beyond 16 per share

Given that the pesticide problem is just a miniscule problem and that it can be easily solved by having proper manufacturing adjustments and seek a retest, then Ate Betty will not only regain her  USD Billionaire status but will laugh on her way to the bank with those stash of millions of shares bought at 13.0 to 13.50

 

SELL CONVRG 

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  • 3 weeks later...
  • 2 weeks later...

SM – An SM breakout could pull the index out of its channel…   
- SM (BUY, PT: Php973/sh) surged 2.98% to Php865/sh, significantly outperforming the 0.19% rally of the index. The stock continues to stay within its box range of Php840-880/sh. Fundamentally, we like SM given its exposure to SM retail and BDO. We see SM Retail benefitting from the strong momentum of consumer spending as inflationary pressures subside. Meanwhile, BDO will benefit from the improvement in loan demand and asset quality from the BSP's policy rate hikes. Should SM rally above its Php880/sh resistance and the PSEi hold its support level, this could be a chance to pick up the biggest blue chip stock in the country. 

BLOOM – Don’t forget to place your bets, a breakout could be in sight! 
- BLOOM (BUY, PT: Php9.50/sh) jumped 4.08% last Friday, breaching its recent high of Php7.30/sh. Despite its 17.2% rally in August, the stock looks like it is still in a good position to maintain its upward trend. We continue to like the company given its strong earnings growth potential, which will be primarily driven by the easing of restrictions and growing Korean and international player base. As such, look to accumulate BLOOM on pullbacks assuming that the stock doesn’t break below its EMA and support level. We see support at Php6.8/sh and resistance at Php7.8/sh.

Market Summary
(Support: 6,500, Resistance: 7,000)
- The local equities market closed higher on Friday, tracking the performance of Wall Street and other Asian markets. The PSEi gained 12.26 points or 0.18% to close at 6,606.00. The top gainers were SM (+2.98%), GTCAP (+1.99%), and ICT (+1.21%). On the other hand, the top decliners were EMI (-3.60%) and SMPH (-2.67%). 

- Value turnover fell to Php4.3Bil from Php5.2Bil traded in the previous session. Meanwhile, net foreign buying reached Php580Mil, a reversal from the Php49Mil net selling on Thursday.

Local News
- GLO priced its SRO shares at Php1,680/sh and is offering 10.12Mil shares to raise Php17Bil. Proceeds will be used to pay debt obligations and fund capex. Existing shareholders will be entitled to one entitlement right for every 13.2366 shares held. GLO initially intended to raise as much as Php32Bil but cut it down to half after selling some of its tower assets. The ex-rights date and record date are set on Sept. 16 and Sept. 21, respectively. Meanwhile, the offer period is from Oct. 3 to 7. 
 

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